(adds Eaton comment, updates stock quote)
DOW JONES NEWSWIRES
Auto-parts supplier ArvinMeritor Inc. (ARM) said a U.S. federal
court jury ruled Thursday in favor of its venture with ZF
Friedrichshafen AG in an antitrust lawsuit against Eaton Corp.
(ETN).
The Delaware jury found the industrial manufacturer engaged in
anticompetitive conduct in the sale and marketing of heavy-duty
truck transmissions. A separate trial will be held to determine any
damages.
Eaton earlier said it had competed in a "fair and vigorous
manner in heavy-duty truck transmissions."
An Eaton spokeswoman said the company is disappointed with the
jury's ruling and intends to appeal.
ArvinMeritor Chairman and Chief Executive Chip McClure said
Eaton's "wrongful conduct" forced it to exit the Nafta line-haul
transmission business and led to the demise of its venture with ZF
Industries.
"Due to the exclusionary tactics employed by our competitor, we
believe our products became difficult and ultimately impossible for
our customers to choose as alternatives to Eaton's offerings," he
added.
In 2005, Eaton won a ruling from the International Trade
Commission that prohibited imports of transmissions for medium- and
heavy-duty trucks made by Germany-based ZF Friedrichshafen,
ArvinMeritor and their joint venture, ZF Meritor LLC, into the U.S.
because of a patent infringement.
ArvinMeritor's shares jumped 13% to $8.71 in recent trading,
while Eaton's were up 1.7% to $56.81 amid a broad market rally.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com
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